Vike
Well-known member
Ah, Mitsubishi has just partnered with Ally to offer a lease deal for our favorite little EV:
http://mmna.wieck.com/releases/3a5b847d-dd77-4f37-a513-e2ae0d5f4b4f
Cutting directly to the fine print:
"Payments are $249 per month for 2012 i-MiEV with Quick Charge package and are based on an agreed upon value equal to its MSRP of $30,675. Monthly payment assumes $3,498 due at signing, including security deposit. Tax, title, license and dealer fees extra. 36 monthly payments total $8,974. Option to purchase at lease end for an amount to be determined at signing. Ally must approve lease. Mileage charge of $0.20 / mile over 36,000 miles. Lessee pays for excess wear."
. . . so about $3500 down, $250/mo. for 36 mos. For comparison's sake, a LEAF SL leases for $3000 down, $319 a month for 39 months. That's $500 less down, but nearly $3500 in extra payments over a 3-month longer lease.
Though I'm normally not interested in leases, I'm now thinking that a lease on a car based on radically new technology and uncertain market acceptance can be considered a risk management tool.
For instance, what if new battery technology greatly improves EV performance and/or pricing over the next three years? In that case, not only might you prefer to have a newer EV, but you also might find that your car has lost more value than expected. With the lease, your costs are all pre-determined, and at the end of your three years you happily turn in the keys and go shopping in the brave new world of modern EVs.
On the other hand, what if your lease ends in the midst of a fuel crisis, EV prices have spiked, and EVs are only available at high markups with long waiting lists? Well, gee, I sure wish I owned this car instead of having to turn it in. But don't forget, you'll have the option to purchase your car at lease end for a pre-agreed price; the net of that transaction might be more expensive than just having bought it to begin with, but at least the downside doesn't include giving up your EV. If the world is EV-crazy enough, your car might even have a market price greater than your pre-agreed "buyout" price. You decide what you prefer to do based on your situation and market conditions.
I have to admit, I like the flexibility in that overall picture. I'm going to have to ponder this. Since Mitsubishi and/or my local dealer have been dragging their feet on my pre-order and I've yet to take delivery, I might just cancel that and lease instead.
As a side point, I find it interesting that the advertised configuration is the ES w/Quick Charge package. This implies that Ally and Mitsubishi consider Quick Charge to be important to maximizing the car's residual value. I've been of this opinion all along, but find this a noteworthy bit of evidence on this point.
http://mmna.wieck.com/releases/3a5b847d-dd77-4f37-a513-e2ae0d5f4b4f
Cutting directly to the fine print:
"Payments are $249 per month for 2012 i-MiEV with Quick Charge package and are based on an agreed upon value equal to its MSRP of $30,675. Monthly payment assumes $3,498 due at signing, including security deposit. Tax, title, license and dealer fees extra. 36 monthly payments total $8,974. Option to purchase at lease end for an amount to be determined at signing. Ally must approve lease. Mileage charge of $0.20 / mile over 36,000 miles. Lessee pays for excess wear."
. . . so about $3500 down, $250/mo. for 36 mos. For comparison's sake, a LEAF SL leases for $3000 down, $319 a month for 39 months. That's $500 less down, but nearly $3500 in extra payments over a 3-month longer lease.
Though I'm normally not interested in leases, I'm now thinking that a lease on a car based on radically new technology and uncertain market acceptance can be considered a risk management tool.
For instance, what if new battery technology greatly improves EV performance and/or pricing over the next three years? In that case, not only might you prefer to have a newer EV, but you also might find that your car has lost more value than expected. With the lease, your costs are all pre-determined, and at the end of your three years you happily turn in the keys and go shopping in the brave new world of modern EVs.
On the other hand, what if your lease ends in the midst of a fuel crisis, EV prices have spiked, and EVs are only available at high markups with long waiting lists? Well, gee, I sure wish I owned this car instead of having to turn it in. But don't forget, you'll have the option to purchase your car at lease end for a pre-agreed price; the net of that transaction might be more expensive than just having bought it to begin with, but at least the downside doesn't include giving up your EV. If the world is EV-crazy enough, your car might even have a market price greater than your pre-agreed "buyout" price. You decide what you prefer to do based on your situation and market conditions.
I have to admit, I like the flexibility in that overall picture. I'm going to have to ponder this. Since Mitsubishi and/or my local dealer have been dragging their feet on my pre-order and I've yet to take delivery, I might just cancel that and lease instead.
As a side point, I find it interesting that the advertised configuration is the ES w/Quick Charge package. This implies that Ally and Mitsubishi consider Quick Charge to be important to maximizing the car's residual value. I've been of this opinion all along, but find this a noteworthy bit of evidence on this point.